Does Term Insurance Cover Accidental Death in India?

Written by : Knowledge Centre Team

2025-12-05

2202 Views

8 minutes read

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

In today's unpredictable and fast-paced life, no one knows what might happen at the next moment. This makes it imperative to think about your loved ones' future. For the safety of your family and securing their life, it is important to buy the best term insurance plan, which will act as a financial cushion in the future. A term insurance plan provides the policyholder with financial coverage for the policy term and offers financial security to their beneficiary in the event of the policyholder's demise during the policy term. The monetary amount to be received by the beneficiary will be according to the plan that you select.

While the core function of term insurance is to provide death benefits, many people wonder about the kind of deaths it covers, particularly accidental deaths. Does your standard term plan provide coverage for accidents? Are there exclusions? And what role do riders play in this context? If your mind ever crossed these questions, then you are on the right page. This blog explores everything regarding the insurance for accidental death. Keep scrolling to dive deeper into the details.

Key Takeaways

Term insurance is the most cost-effective way to secure a large life cover, including accidental deaths, making it ideal for young earners and primary breadwinners.
Most term insurance policies provide a death benefit in the event of accidental death, as long as it falls within the insurer’s defined conditions.
High-risk activities like adventure sports or self-inflicted injuries may not be covered unless you’ve opted for relevant riders.
Adding an accidental death benefit rider, critical illness rider, or permanent disability rider can offer enhanced financial protection for you and your family.
Deaths due to drug overdose, STDs like HIV/AIDS, suicide, or if the beneficiary is involved in the policyholder’s murder are typically not covered.

Understanding Term Insurance and Accidental Death Coverage

A standard term insurance plan provides a death benefit if the policyholder passes away during the term. But the nature of the death, like natural, accidental, or otherwise, can impact the payout.

Does Term Insurance Cover Accidental Deaths?

Yes, most term insurance plans do cover accidental deaths. An accident is defined as an unforeseen, involuntary, and sudden event leading to death, typically within 90 to 180 days of the incident. Examples include:

Road accidents
Slipping in the bathroom
Falling from a height
Fire-related mishaps
Electrocution
Drowning

However, accidental deaths resulting from high-risk activities like adventure sports (e.g., skydiving or bungee jumping) or willful negligence may not be covered unless you’ve opted for specific riders.

What Type of Deaths are Covered and Not Covered by a Term Insurance Plan?

The payout and benefits of every life insurance policy you buy depend on the cause of the policyholder's death, among other things. These conditions may sometimes vary according to the company in question or the chosen plan.

All these details are clearly stated in your policy, and this is why you should always read the papers stating the terms and conditions before buying a life insurance plan and also share all these details with your nominee so that at the time of claiming the insurance payout, they are saved from any hassle and confusion.

The following list is an overview of the types of deaths that a typical term life insurance plan does and does not cover:

Deaths Covered in a Term Insurance Plan:

The following are the causes of death that are typically eligible for a term insurance payout:

Death Caused by Health Issues or Natural Deaths: If the policyholder dies a natural death, like dying in one's sleep, or a death caused by health-related issues except for sexually transmitted diseases, within the policy term.

Death Due to a Natural Calamity: If the policyholder passes away due to a natural disaster such as a tsunami or an earthquake within the policy term, the death benefit will be paid out to the beneficiary.
Accidental Death: Accident that arises due to the factors discussed above are covered by the life insurance policy.

Deaths Not Covered in a Term Insurance Plan:

The following are the causes of death that are typically not eligible for a term insurance payout:

Homicide by the Beneficiary: If the policyholder is murdered, and proven that the beneficiary was the one responsible.
Death Due to Sexually Transmitted Diseases: If the policyholder's death is caused by a sexually transmitted disease such as HIV or AIDS, then the death benefit is not paid out.
Death by Overconsumption of Intoxicating Substances: If the policyholder's death is caused by an overdose of any intoxicating substance like alcohol or drugs, then the death benefit will not be paid to the nominees of the term plan.
Some plans offer an insurance payout on deaths by suicide but only if the death occurs within 12 months of buying the term insurance plan. At the same time, others offer no payout at all for deaths by suicide and self-inflicted injuries.

Get the Best Term Insurance Plan for Your Needs

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

...Read more Consent is required

What are the Benefits of Buying the Best Term Insurance Plan?

There are numerous ways in which term insurance plans prove to be beneficial. Here are some of the benefits of buying a term insurance plan for the financial security of your loved ones:

Term Insurance Riders: When buying a term insurance policy, you get the option to choose riders or additional clauses to go with it in exchange for a slightly increased premium. To better understand riders, think of how you order a pizza. You get the option of selecting additional toppings at different prices on the already existing recipe. Similarly, you can add a rider(s) of your own accord to the already existing policy with its predetermined list of benefits.
For Example, you can add a cover for Critical Illness Rider to your term life insurance plan so that in case you get diagnosed with a critical illness during the term of your plan, the insurance company offers you a certain amount of money to meet the treatment expenses and save your family from the financial setback.
Another example can be a rider for disability resulting from an accident, so that in case an accident takes place which results in dismemberment or any other kind of disability, a certain amount will be paid to you by your insurance company to cover the costs of treatment and make up for the lost income.

Protection Against Mishappenings: Especially in a country like India where most families depend upon a single breadwinner, it is of the utmost importance to ensure the rest of the family's financial security in case something occurs. Even in households with more than one earning member, if one is no more, it will be necessary to supplement that person's income for the family to maintain its lifestyle. Buying a term insurance plan will enable you to continue taking care of your family, even if you are no longer with them.

Tax Benefits: Under Section 80C of the Income Tax Act of 1961, you can avail of tax benefits of up to ₹1.5 lakhs on premiums paid in favour of your term insurance plan.

Disclaimer: Tax benefits are subject to change in tax laws. Please consult your tax advisor.

Multiple Payout Options: If you feel that your beneficiary may not be able to manage a lump sum insurance payout or might fall prey to someone looking to scam them. You can choose from multiple payout options and select them to get the whole amount at once or in instalments paid to them at regular intervals.

4 Important Points to Keep in Mind Before Buying a Term Insurance Plan

Before purchasing a term insurance plan, it’s essential to take a step back and evaluate key factors that will determine how well the policy serves your family’s needs. From assessing your dependents' future requirements to choosing the right insurer and riders, here are four crucial considerations to make an informed decision:

Assess the financial needs of the people for whom you are buying the insurance plan. For example, if there are children, you need to consider the number of children and the major costs like expenses on education that they will face. Also, consider the total number of dependents and their needs. It is very important to think of the needs that may arrive in the future. For example, if there are elders or people well on their way to old age, consider their medical requirements.
Calculate the premium you will have to pay annually and decide according to your spending capacity. Factoring in the benefits you want, the payout amount you wish your beneficiary to receive, and the riders you want to attach along with the base plan offered by your insurance company.
Study the Claim Settlement Ratio (CSR) of the company before making your purchase. An insurer's CSR is calculated as the percentage of claims that they have settled during a financial year. While considering your options, you should always look at a company's CSR for at least the last five years because you want to ensure that your family doesn't face any difficulties in claiming their rightful payout.
Lastly, selecting riders is another important thing you need to think carefully about before buying a term insurance plan. The basic plan is always generic, but the needs of the people vary. This is why these riders exist in the first place, to give you a more customised experience based on your needs and wishes.

Conclusion

Life is unpredictable and unreliable, but we, at Canara HSBC Life Insurance, strive to be the opposite. We understand your needs and offer term insurance and many other plans that act as saving instruments for you so that you can ensure your family's future and ensure their happiness.

So, don't wait for uncertainty to strike. Act today and invest in a term plan that covers every curveball life may throw your way.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.